Delta's Business Strategy Case Study

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Delta is determined to remain an industry leader by maintaining positive financial performance and expanding their geographic coverage. After emerging from bankruptcy in 2007, Delta has turned the airline industry upside down with its unusual strategies which made them a leader in the airline industry both in domestic and international travel. Delta maintains positive financial performance despite bankruptcy. As the economy grows stronger the demand for air travel has increased, making it easier for airlines to produce a profit. The FAA forecast projects passenger growth to average 2.0 percent per year, reaching one billion passengers in 2029, and 1.14 billion by 2035 (Price, 2015). After suffering financial hardship, Delta has …show more content…
Delta uses a differentiation strategy in everything they do. Unconventional moves such as unique employee profit-sharing programs, the purchase of an oil refinery and the method in which they purchase their jets has set them apart and has made them an industry leader today. Delta’s unique employee benefit program gets employee invested in the company’s goals. Unlike any other airline in the industry, Delta’s employee profit sharing program is unique. Each year, 10% of earnings before taxes and management compensation are paid out in bonuses. Delta also offers a stock ownership plan – also unique in the industry that gives pilots, flight attendants, ground crew members, and support staff 15% of the company’s equity (Anderson, 2104). Programs such as these motivate employees to perform at higher levels. Today Delta is one of the healthiest, most profitable airlines in the world, with some of the best performance rankings in the industry (Anderson, …show more content…
Delta’s Rules of the Road strategy was put in place as a guide to provide a clear focus on the skills and behaviors all employees must demonstrate in order to accomplish its goals. Their goal is to be clear about the courteous culture, open communication, financial discipline, and efficient operations that Delta should maintain (Anderson, 2014). This strategy combined with the profit sharing program has been successful for Delta because it provides a solid foundation for Delta’s culture and helps get all employees vested in company’s overall goals. The key to Delta’s outperformance has been their people and our anything-but-standard approach to doing business (Anderson, 2014). Delta’s Rules of the Road outlines the following key

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